Guest editorial: Navigating the digital transformation maze: an editorial on strategy, execution and impact for firms Free

Organizations worldwide are heavily investing in advanced digital technologies to reinvent their operations and value propositions. Global spending on digital transformation initiatives reached approximately $1.85 trillion (a 16% year-on-year increase) in 2023 (Revankar, 2024), with this figure projected to grow to $3.9 trillion by 2027 (Shahmiri, 2025). These investments reflect a widespread belief that emerging technologies (e.g. artificial intelligence [AI], Internet of Things [IoT], big data analytics [BDA] and cloud platforms) can unlock new levels of efficiency, innovation and customer value. Digital transformation entails a firm leveraging digital technologies and other business assets to revamp its operational model, processes and performance in the hope of gaining sustainable competitive advantages (Benbya et al., 2020). This undertaking infuses digital technology into all organizational areas, fundamentally altering how a firm functions.

Effective digital transformation comes with challenges despite its aggressive investment and clear potential. According to a recent report, only about one-third of digital transformation initiatives fully accomplish their goals (Revankar, 2024). Common barriers include staff resistance to change, cultural inertia, legacy systems and difficulties managing new technologies’ complexity. Today’s business environment is also evolving rapidly: the COVID-19 pandemic accelerated remote work and online services. Meanwhile, customers’ expectations around digital experiences are rising, and competition among platform-based and data-driven innovators is fierce (Verhoef et al., 2021). Such high stakes underscore the need for scholarly insights into how firms can successfully navigate digital transformation. Pertinent questions include the following: What organizational capabilities and governance mechanisms support digital transformation? How do emerging technologies such as AI and IoT affect firms’ performance and strategies? How can digital transformation align with sustainability goals and stakeholders’ interests? How should managers and policymakers respond to digital transformation’s risks and opportunities?

This special issue of Internet Research, centered on “Digital Transformation of Firms”, was conceived to ponder these questions. The call for papers emphasized embracing retrospective and forward-looking positions on how firms’ digital transformation has developed and may unfold in the future – for employees, consumers and the business ecosystem as a whole. We received 109 manuscript submissions from authors in 31 countries and regions across six continents. Ten papers were ultimately accepted after being rigorously evaluated for theoretical contributions, methodological soundness and fit with this special issue’s theme. These articles span multiple contexts: large public companies in China, small enterprises in Europe and industries such as manufacturing, healthcare and e-commerce. The authors employed diverse methods (e.g. quantitative analyses of archival data, survey research, mixed methods and case studies), reflecting the multifaceted nature of digital transformation research. These studies collectively examine the phenomenon through lenses ranging from corporate governance and risk mitigation to platform ecosystems, sustainable manufacturing and societal technology adoption. They provide fresh evidence and conceptual syntheses on key themes such as digital intelligence transformation, digital governance, AI/IoT adoption, digital sustainability, platform-enabled ecosystems and organizational change management.

In this guest editorial, we first provide an overview of research on firms’ digital transformation. Next, we summarize the insights from the 10 papers, highlighting their shared contributions, methodological variety and theoretical implications. We then offer practical guidance for managers and policymakers based on these articles. Finally, we propose several promising research directions at the intersection of digital technology and firm transformation. Our goal here is to present a state-of-the-art understanding of firms’ digital transformation and inspire further scholarly inquiry and actionable guidance in this critical domain.

Digital transformation has emerged as a strategic pillar for organizations in varied sectors. It essentially modifies business models, operational processes and the customer experience via digital technologies (Verhoef et al., 2021; Vial, 2021). Fruitful transformation requires that a firm’s technology implementation, strategic vision and organizational culture be well aligned; committed leadership and relevant capabilities are especially critical (Majchrzak et al., 2016; Sebastian et al., 2020). Technological enablers of digital transformation include mobile technologies, analytics, cloud computing and social media (Nadkarni and Prügl, 2021). Innovations such as IoT, AI and blockchain are similarly influential (Khalid, 2024).

The COVID-19 pandemic fast-tracked digital transformation initiatives across sectors. Fletcher and Griffiths (2020) documented how this crisis compressed transformation timelines from years to months, particularly for remote work technologies, e-commerce and digital service delivery. It is imperative to grasp the linkages between digital transformation efforts and firm performance. Dimensions to consider include financial outcomes (e.g. revenue growth, profitability, cost reduction), operational efficiency, innovation performance, and, increasingly, sustainability and resilience (e.g. Drechsler et al., 2020; Li, 2022). It is also necessary to identify factors that mediate or moderate these relationships. This context can shed light on why some firms succeed while others struggle.

Despite its importance, digital transformation faces persistent challenges. Research has revealed implementation barriers such as organizational inertia, legacy systems and skills gaps (Müller et al., 2024). Svahn et al. (2017) pointed out four competing concerns that organizations must balance during digital transformation: capability (existing vs. requisite), focus (product vs. process), collaboration (internal vs. external) and governance (control vs. flexibility). Besides technological implementation, firms need to overcome barriers such as staff resistance, cultural inertia and strategic misalignment – all of which call for structural changes, capability building and cultural transformation (Kane et al., 2019).

Digital transformation is a complex, sociotechnical process that touches on numerous aspects of organizations and their environments. The papers in this special issue stress different facets of this phenomenon. Nonetheless, meaningful thematic connections exist. We have hence grouped scholars’ contributions into five clusters: (1) Mapping the Intellectual Landscape of Digital Transformation Management; (2) Digital Intelligence Transformation; (3) Digital Governance and Corporate Transparency; (4) Platform Ecosystems and Data-enabled Trust; and (5) Digital Transformation for Sustainability and Inclusion. We highlight below how the associated papers complement one another and advance theory.

1. Mapping the Intellectual Landscape of Digital Transformation Management: Choudrie et al. (2025) offered a much-needed panoramic view of this realm via a systematic review and bibliometric mapping. In scanning 186 peer-reviewed articles published between 2017 and 2023 on Scopus and Web of Science, the team traced a steep annual growth rate (≈46%). Co-citation and keyword analyses unearthed several key themes around digital transformation, including digital leadership, AI, digital innovation, change management and entrepreneurship. Burst detection showed that work on AI governance and data ethics has surged exclusively in the past two years. Beyond taking stock, the authors inductively crafted a conceptual framework that frames digital business, the digital economy and e-government as mainstays of digital transformation management. This structure reframes state-of-the-art debates by shifting attention from isolated technology deployments to managerial actions (e.g. planning, organizing, coordinating and leading) that imbue digital investments with firm-level and societal value. Choudrie et al.’s (2025) thematic map further highlighted how keywords such as “digital leadership,” “innovation” and “AI” have transitioned from peripheral to “motor” themes since 2020. This movement signals a research area that blends strategic renewal with human-centric governance. By synthesizing fragmented knowledge streams and describing emergent topics, Choudrie et al. (2025) provided insights for scholars seeking to push digital transformation research toward more cohesive, impact-oriented theories of how firms can cope with continuous technological advancement.

2. Digital Intelligence Transformation: The convergence of digital transformation with AI and data analytics represents a new frontier for firms. By embedding AI, IoT and BDA into organizational processes, firms can enhance decision-making and create intelligent products and services. However, realizing performance gains from these technologies requires updates to skills, processes and culture. Dynamic capabilities theory suggests that firms must constantly adapt and reconfigure resources to exploit digital innovations (Gupta et al., 2020). For instance, adopting AI might improve a firm’s information processing and analytical capacities, but performance impacts will depend on how well the company incorporates these tools into its strategy and operations. In studying this issue, Zhao et al. (2025) drew on the notions of dynamic capability and business agility to assess when and how AI-enabled digital transformation boosts firms’ performance. They found that the pace, scope and rhythm of transformation are strategic contingencies that can amplify or undermine the benefits of digital innovation. The authors’ nuanced view corresponds to organizational change theories about incremental versus radical change and the timing of technology adoption. Complementarily, while Zhao et al. (2025) mostly attended to large firms and internal processes, Ardito et al. (2025) turned to small and medium-sized enterprises (SMEs) in Europe. They explored how applying cutting-edge digital intelligence technologies correlates with business growth. Their study provides large-scale empirical evidence of how AI adoption can benefit SMEs’ performance. Ardito et al. (2025) also observed a synergistic effect: SMEs that leverage IoT devices to collect data, use BDA to analyze data and apply AI algorithms to optimize decisions can hone capabilities that encourage sales. The authors noted that these technologies likely enable SMEs to refresh their business models and better reach customers, ultimately boosting revenue.

3. Digital Governance and Corporate Transparency: Digital transformation does more than revise operational processes; it has implications for corporate governance, risk management and transparency. Digital governance encompasses the structures and processes by which organizations direct and control digital initiatives and information technology (IT) use (Hanisch et al., 2023). Effective digital governance ensures that technology investments match firms’ strategic objectives and ethical standards, thereby cultivating stakeholder trust (Proksch et al., 2024). Two papers in this special issue exemplify this theme. Hu et al. (2025) discussed whether greater corporate digitalization leads to higher disclosure quality in financial reporting. Grounded in signaling theory, they posited that digital tools strengthen internal controls and information transparency, thus reducing information asymmetry between managers and shareholders. Shang et al. (2025) examined digital transformation’s role in alleviating corporate fraud. They asserted that digital transformation would improve internal monitoring and boost information flow, both of which in turn alleviate corporate fraud. These investigations tie into the broader theory of corporate governance: digitization can presumably lessen agency costs and bolster transparency.

4. Platform Ecosystems and Data-enabled Trust: As part of digital transformation, some firms reconfigure their business models around technological ecosystems. Digital platforms facilitate interactions between multiple user groups (e.g. buyers and sellers in a marketplace, suppliers and manufacturers in a supply network) and often rely on data-driven services to generate value (Tiwana et al., 2010). Trust and governance mechanisms are paramount in these spaces: platform operators must orchestrate fair, reliable and secure transactions among various parties. A value co-creation stance suggests that data empowerment can enhance mutual value and build trust. One paper in this special issue (Sun and Qu, 2025) considers cross-border e-commerce platforms, namely how platform data empowerment informs sellers’ platform trust. By taking the platform–seller relationship as a form of co-created value, Sun and Qu’s (2025) work extends theories of inter-firm trust and cooperation to the digital platform context. Another study similarly speaks to ICT-enabled interactions in supply chains and their effects on interorganizational relationships (Lu et al., 2025). Drawing on collaboration theory, Lu et al. (2025) demonstrated that ICT-enabled interactions reduce conflict and promote joint action in supply chains. The study’s findings showed that while public social media (PSM)-enabled interaction is more effective in mitigating conflict, interorganizational information systems (IOSs)-enabled interaction is more effective in promoting joint action. These two papers lend credence to the idea that digital connectivity molds how trust is maintained in platform ecosystems.

5. Digital Transformation for Sustainability and Inclusion: A budding theoretical angle is the intersection of digitalization with sustainability and its role in inclusive technology adoption for societal groups. Digital technologies can be double-edged swords. On the one hand, they allow for innovative resource management, energy efficiency and the dematerialization of processes. On the other hand, they introduce sustainability challenges (e.g. energy use in data centers, e-waste) and require aligning digital strategy with corporate social responsibility (Hilty and Aebischer, 2015). Three studies in this special issue show that digital transformation is not just about profit and efficiency; it also carries environmental, social and human implications. By merging sustainability and user-centric perspectives, these articles enlarge the scope of digital transformation research to cover grand challenges (e.g. environmental sustainability, aging populations). Martínez Falcó et al. (2025) stated that firms derive greener innovation pay-offs from digital initiatives when two organizational enablers exist: green knowledge sharing and top management environmental awareness. These findings position digital transformation as a catalyst that unlocks sustainability benefits only if ecological values permeate both information flows and leadership mindsets. Further supplementing this work, Li et al. (2025) presented a case-based typology of “digital sustainability capabilities” in smart manufacturing. Their model includes capabilities in sustainable production, sustainable management and environmental governance that partly reconcile technological advancement and environmental stewardship. Finally, Leung et al. (2025) looked at social inclusion in healthcare, revealing how technology anxiety and perceived complexity impede older adults’ adoption of mobile health applications. Their study sits at the nexus of digital transformation in health services and the wider goal of digital inclusion; the results help clarify how all segments of society, including those whose members are less tech-savvy, can engage with and benefit from digital innovations. Collectively, these contributions take digital transformation theorizing beyond efficiency and profit to address green innovation performance, organizational ecology and digital inclusion.

In summary, this special issue’s theoretical framing spans several levels of analysis, including individual (e.g. user adoption, employee adaptation), organizational (e.g. capabilities, governance, strategy) and interorganizational (e.g. ecosystems, supply networks) points of view. It also brings together diverse theoretical perspectives, including dynamic capabilities, signaling theory, trust and cooperation, sustainability-oriented innovation and change management. This diversity reflects the interdisciplinary nature of digital transformation research. We now describe practical implications of this special issue, illustrating how each study provides valuable guidance for practitioners.

The studies in this special issue yield ample practical insights. Their recommendations are especially relevant to the business leaders and policymakers steering today’s digital transformation of firms and economies. As with the authors’ contributions, these implications pertain to several domains: (1) strengthening digital governance for transparency and integrity; (2) fine-tuning the pace and scope of transformation; (3) holistically leveraging complementary technologies; (4) empowering stakeholders and fostering trust; (5) aligning digital initiatives with sustainability goals and (6) adopting a user-centric, inclusive design mindset.

Strengthening digital governance for transparency and integrity. Managers should leverage digital tools to improve internal controls, compliance and reporting precision. For example, integrated data systems and analytics can reduce information asymmetries and flag irregularities; disclosure quality thus rises while fraud declines (Shang et al., 2025). Boards and CEOs ought to view investments in digital infrastructure not as mere IT upgrades but as governance interventions that preserve shareholder value. Policymakers and regulators, particularly in emerging markets, can persuade firms to digitalize by highlighting fraud-reduction and transparency benefits. They should also revise their regulatory frameworks to accommodate and promote digital reporting (e.g. data-rich disclosures). Offering guidelines on data governance and privacy can maximize the positive governance impact of digital transformation.

Fine-tuning the pace and scope of transformation. Executives are encouraged to roll out digital initiatives carefully. Rushing headlong into concurrent projects can overwhelm an organization. Instead, companies are advised to implement initiatives in stages; early wins will build confidence and keep processes on track. A consistent pace that produces consistent results (while remaining agile) helps maintain enthusiasm. Each stage needs a clear yet reasonable focus (e.g. with a narrow scope) for meaningful change to stick (Zhao et al., 2025). CEOs may prioritize core processes first and then gradually extend into peripheral areas instead of overhauling all systems at once. Establishing a digital transformation office or a task force that monitors the rhythm of change can help ensure that firms’ early lessons inform subsequent stages. As for policy, government programs that support digital transformation (e.g. grants or digitalization roadmaps for SMEs) should emphasize training and change management. That way, firms can become adept at managing the transformation process itself, not simply at acquiring technology.

Holistically leveraging complementary technologies. The research in this special issue indicates that implementing AI in isolation may not yield full benefits unless a firm also has the data (e.g. via IoT sensors or data analytics platforms) to feed and refine AI-based systems (Ardito et al., 2025). Managers should therefore identify complementary innovations that can be bundled to solve end-to-end business problems. In a retail SME, using an AI tool for demand forecasting will be much more effective if the firm integrates IoT devices or software to track real-time inventory and capture big data on sales. Policymakers can assist by devising integrated support programs (e.g. a scheme that helps firms deploy a suite of Industry 4.0 technologies rather than a single technology). Furthermore, awareness campaigns and case studies showing how technologies jointly promote growth could encourage SMEs to think outside one-off technology investments.

Empowering stakeholders and fostering trust. For platform businesses and firms in extended supply chains, stakeholder relationships are as critical as technology implementation. Managers of digital platforms should invest in features that afford their stakeholders rich data, such as transparent performance metrics, analytics tools and open communication channels (Sun and Qu, 2025). By co-creating value in this way, platforms can increase complementors’ trust and loyalty to build a more vibrant ecosystem. Platform managers may wish to supply sellers with demand trend data or advertising analytics on an e-commerce site; drivers for a ride-sharing company could be given insights into customer ratings and route optimizations (Gawer and Cusumano, 2014). In supply chain relationships, sharing information such as forecasts, inventory levels and production plans with key suppliers or customers can ease tensions and forge partnerships focused on mutual efficiency (Zhang et al., 2016). However, managers should craft data governance agreements to ensure that trust will not be undermined by misuse of shared data. Policymakers could enact industry data-sharing standards to heighten firm trust.

Aligning digital initiatives with sustainability goals. Corporate leaders should proactively link their digital transformation initiatives with environmental and social objectives. Such efforts could involve choosing technologies that reduce energy use, wielding data analytics to identify waste-cutting opportunities in manufacturing, or applying AI to adjust logistics routes for lower carbon emissions (Gregori and Holzmann, 2020). Case study evidence suggests that firms should home in on digital sustainability initiatives, like tracking their carbon footprint in real time and training staff on sustainable practices enabled by digital tools (Li et al., 2025). Managers in traditional industries might consider forming cross-functional teams that include IT, operations and sustainability officers to steer projects toward dual goals (i.e. efficiency and eco-friendliness). Policymakers can support this aim by offering green digital transformation grants or drafting digital criteria for environmental regulation compliance, such as requiring the use of digital monitoring for emissions reporting. They should also strive to standardize metrics for “digital sustainability performance,” as the lack of sustainability measures in digital systems has been cited as a challenge (Rai et al., 2006). Firms could then have clearer targets and incentives to pursue sustainable digitalization.

Adopting a user-centric, inclusive design mindset. Managers deploying new systems must account for the user experience as well as necessary training (i.e. for staff, customers and other stakeholders). Leung et al.’s (2025) mobile-health study demonstrated how understanding the end user’s tasks and pain points can inform design choices that increase adoption. Likewise, when implementing an internal software platform or a customer-facing application, companies should actively engage with target users to ensure that the technology truly supports these groups’ work or lifestyles. This level of attention is especially important for users who may be less tech-savvy or more resistant to change (e.g. older employees, clients unfamiliar with technology). Providing robust support, simplifying interfaces and conveying a technology’s benefits in digestible terms can alleviate resistance. Corporate training programs need to accentuate both how and why to adopt innovation, stressing that new tools will expedite daily tasks. For policymakers in healthcare, finance or government services, the main implication is to promote digital literacy and inclusion programs. Running workshops to teach seniors how to use health applications or providing subsidies for low-income individuals to access digital services, can ensure no one is left behind as industries digitalize. Regulators should also bear usability and accessibility standards in mind when creating digital service regulations.

In essence, the above advice can be summarized thusly: plan well, integrate mindfully, share wisely, aim for sustainability and design for users. Managers who adhere to these principles are more likely to see their digital transformation investments translate into real organizational improvements and competitive advantages. Policymakers who incorporate these suggestions into digital economy strategies can nurture environments where firms do not simply adopt technology but do so in a responsible, inclusive, growth-oriented fashion.

While the papers in this special issue greatly advance our understanding, they uncover questions and gaps worthy of exploration. Firms’ digital transformation is ever-evolving; continuous inquiry will help stakeholders stay up to speed both theoretically and practically. We conclude by outlining several promising research avenues for future research (see Figure 1).

An Integrative Paradigm for Organizational Renewal in the Digital Era. One intriguing direction concerns how digital transformation reshapes managerial thinking and, in turn, the theories that guide scholarship. Researchers to date have largely examined digital transformation through established lenses (e.g. dynamic capabilities theory, institutional theory). However, these frameworks may only partially capture digitalization’s transformative nature in relation to organizational ontology. Future work should evaluate how digital transformation reconstitutes the heart of organizing, posing questions such as “What new categories, rules of thumb, and reasoning patterns emerge in highly digitalized firms, and how do they influence resource allocation, risk assessment, and stakeholder governance?” Such assessments could call for novel or hybrid theoretical frameworks that embrace fluidity and emergent agency across human and technological actors. These models might inherently challenge traditional management theories and research methodologies.

Long-Term and Dark Side Effects of Digital Transformation. Many studies have documented the immediate or short-term benefits of digital initiatives (e.g. increased revenue and reduced fraud, as seen in this special issue). The long-term impacts of digital transformation also need to be tracked longitudinally. Uncertainties remain about whether firms’ performance gains persist, plateau or even reverse as competitors catch up. Moreover, understanding the negative effects that might surface over time is crucial. These consequences can stem from distinct sources, including the complications that digital technologies introduce (e.g. new forms of digital fraud, cybersecurity vulnerabilities) and unintended outcomes resulting from poorly managed digital transformation (e.g. employee burnout from continuous and unsupported change; privacy breaches due to inadequate data governance). In appraising the dark side of digital transformation, scholars can scrutinize problems such as digital fraud, privacy breaches or excessive reliance on automated systems that might diminish human oversight. The organizational stress caused by perpetual technological shifts presents another interesting angle: related research could provide a balanced viewpoint by distinguishing innate risks from those arising from managerial decisions. The findings would permit firms to sustain technology-associated benefits while mitigating emerging threats. Studies along this line may revive theories of organizational risk management for the digital era as well; models revolving around signaling theory or transaction costs can be modernized to account for the unprecedented hazards of advanced technologies.

Comparative Contexts: Organizations, Industries, and Cultures. This special issue portrayed the context-specific nature of digital transformation. For example, Chinese firms and European SMEs focus on unique outcomes, and platform dynamics may vary between US and Asian markets. Scholars should assume comparative perspectives across certain dimensions, such as how digital transformation proceeds in different institutional or cultural settings. Cross-cultural case studies or surveys could enrich our understanding of institutional moderators. Similarly, inter-industry comparisons (e.g. manufacturing vs. services, healthcare vs. finance) may illustrate industry-specific patterns. For-profit and non-profit organizations embody another critical area for exploration. These firms’ distinct missions, governance structures, resource models and stakeholder expectations likely shape their digital transformation journeys in particular ways. Revealing generalizable and context-dependent insights would be ideal. Theories could then be somewhat tailored to help practitioners set benchmarks against peers in similar environments.

Integrating Human Capital and Skills Development. Several papers in this special issue touched on human factors, but more research is needed into how organizations can upskill and reskill their workforce during digital transformation. The success of any technology implementation hinges on people being able to use and innovate with the chosen tools. Ensuing studies could identify the roles of digital leadership and organizational learning in effective transformation. For instance, what leadership styles or change management practices correlate with higher employee adoption rates of new technology? How can firms promote a digital mindset among staff and overcome fear of AI-induced job displacement? Furthermore, micro-level studies such as ethnographies or longitudinal surveys of employees going through a digital change could expose the roots of macro-level outcomes. Given worries about workforce displacement due to automation and AI, this line of inquiry is of great societal and theoretical value.

Ecosystem-Level Dynamics and Platform Strategy. The platform-related research in this special issue gauged the seller–platform dyad based on trust, but digital ecosystems usually involve complex interactive networks. Researchers could adopt an ecosystem perspective in the future, studying how one firm’s digital transformation triggers adaptations among other network actors. For example, if a manufacturer digitalizes its supply chain, how do its suppliers respond? How do complementors adapt their strategies to maintain trust and visibility as platforms evolve (e.g. introducing AI for information searches or personalization)? Platform governance and regulations warrant deliberation as well. As big-tech companies are being watched more closely, researchers could mull over how external forces (e.g. antitrust and data regulations) are inspiring platform-focused changes. This standpoint surpasses single firms to track firms’ co-evolution and regulatory administration in the digital economy.

Digital Transformation and Sustainability Trade-offs. This special issue’s case study on digital sustainability served as a launchpad in this regard, but quantitative and other empirical studies can contextualize the results more thoroughly. Follow-up work could test the proposed “twin transformation” on a larger scale: do firms that invest in digitalization tend to improve or worsen their environmental, social and governance performance on average? It is also important to determine whether distinct firm clusters exist. Perhaps some organizations achieve win-win outcomes by excelling at digital transformation and sustainability compared to firms that are digitally advanced but lag in sustainability efforts (or vice versa). Pinpointing the factors that lead to synergy versus trade-offs between digital and sustainability outcomes would be extremely useful. Scholars may need to evaluate strategy alignment, technological choices and stakeholder pressure to identify these aspects. Theoretical progress could draw on sociotechnical systems theory and the notion of organizational ambidexterity. Researchers can also propose domain-specific digital sustainability solutions. For instance, how might blockchain enable sustainable supply chain transparency? How can AI be used to manage climate-related risks? By systematically linking digitalization with sustainability, authors can contribute to theory and practice by discerning ways to adopt technology for sustainable development purposes.

Methodological Innovation in Digital Transformation Studies. Finally, the methodological rigor and creativity of studies should continue to improve. Digital transformation is tricky to measure and often endogenous to performance. This special issue’s papers feature panel data methods, instrumental variables and other approaches, but more stands to be done. Scholars could conduct natural experiments (e.g. on regulatory changes or sudden shocks) to determine how forced digital adoption affects firms. Organizational field experiments (e.g. A/B testing new digital tools) could isolate effects on productivity or employees’ attitudes. With the growing availability of big data and digital trace data, researchers might apply machine learning to parse text (e.g. annual reports or social media posts) for transformation indicators or to detect cultural sentiments around digital change. Interdisciplinary approaches are also worthwhile. One could combine qualitative and quantitative methods to capture soft dimensions of transformation (e.g. employee perceptions, cultural shifts) and hard metrics (e.g. performance outcomes, productivity changes). For instance, authors could qualitatively track a digital transformation initiative while collecting quantitative data to assess its impact. Strengthening causal inferences and revealing transformation processes’ nuances will allow for more reliable findings and richer explanations.

In conclusion, firms’ digital transformation represents a moving target: they will face new hurdles and opportunities on their digital journeys as technologies (e.g. AI, 5G, blockchain, the metaverse) advance and business environments shift. Academia must likewise evolve, probing novel topics and refining theories. The contributions of this special issue lay groundwork in several areas (e.g. governance, strategy, ecosystems, sustainability, inclusion) while illuminating how much we have yet to learn. We encourage scholars to take up these questions, employing robust and innovative methods and to keep the dialogue between research and practice flowing. Their studies can guide firms and societies through the digital revolution in an effective, ethical, inclusive manner.

Firms’ digital transformation constitutes a multifaceted organizational journey with profound implications for performance, governance and society. This guest editorial has synthesized insights from Internet Research’s special issue on this theme, spotlighting theoretical developments and practical lessons. The 10 articles herein show that technology alone does not guarantee fruitful digital transformation; rather, success depends on elements such as leadership, process design, capability building and alignment with broader goals. These papers also showcase the expansiveness of digital transformation: it colors everything from financial disclosure and fraud prevention to SME growth strategies, platform ecosystems, supply chain collaboration, green manufacturing and healthcare inclusion.

For scholars, this collection underlines the value of interdisciplinary research and the need to revisit assumptions as digital realities become clear. For example, it is time to rethink governance in the age of AI and big data and extend adoption theories to late adopters. For practitioners, this special issue offers evidence-based guidance on several matters: embracing digital opportunities with well-defined strategies and change management plans; building trust through transparency and empowerment; and striving for transformations that are not only digital but also intelligent, sustainable and human-centric. For policymakers, this compilation reinforces the importance of creating enabling environments through infrastructure, education and regulation. Policies can then seize on the benefits of digital transformation while allaying potential risks.

We are at a pivotal moment where digital technologies have become embedded in business operations and everyday life. Firms’ transformation is ongoing and, in many ways, just beginning – technologies like generative AI are poised to alter the landscape yet again. The scholarly community must continue to provide theoretical frameworks, empirical evidence and critical analyses to help make sense of these changes.

We would like to express our sincere gratitude to all authors who contributed their high-quality research to this special issue. We are also grateful to the dedicated reviewers who provided thoughtful, constructive feedback that greatly enhanced the accepted manuscripts’ quality and clarity. Our heartfelt thanks go to the editorial team of Internet Research as well – especially the editorial assistant who provided outstanding support in coordinating the review process and managing submissions. Finally, we extend our deep appreciation to the Editor-in-Chief of Internet Research, Dr Christy M.K. Cheung, for her enthusiastic endorsement and guidance throughout the assembly of this special issue. We hope that this collection and its contributions stimulate further inquiry, encouraging academics and practitioners alike to view digital transformation not as a buzzword or a one-time endeavor but as an organizational asset and a catalyst for positive change.